Scotiabank Jamaica lowers rates to incentivize energy efficiency
Scotiabank Jamaica has created a loan facility which can be accessed by small and medium-sized enterprises (SMEs) as well as homeowners to purchase renewable energy systems.
The loan is being offered at a rate of 9.75 per cent per annum. Also available is an unsecured loan at a rate of 15.99 per cent. The institution’s base lending rate is currently 15.75 per cent, according to a release from Scotiabank.
The release said the energy loan is the first of its kind for Scotia Jamaica. It can be applied to a range of projects including the installation of solar panels, solar water heaters, the setting up of grid panels and the purchasing of equipment to support other green energy systems.
“This loan offer is timely and supports the national objective of identifying cheaper, renewable energy sources and promoting its use in homes and businesses,” said Wayne Powell, Executive Vice President Retail Banking.
Customers of Scotia Jamaica Building Society can access a maximum loan of J$2 million at a fixed interest rate of 9.75 per cent for the first three years, after which it reverts to the existing standard rate. The maximum loan term is five years.
For small and medium sized enterprises, the interest rate of 9.75 per cent is fixed for the five year life of the loan.
Renewable energy, generated from natural resources such as sunlight, wind, rain, tides and geothermal heat, is fast becoming a more economical alternative for both private and commercial entities. This as the price of oil on the world market continues to lead to higher energy costs and spikes in their energy bills.
Crude oil is currently hovering at just below US$100 per barrel.